Intelligent Investment
Northern Virginia
North America Data Center Trends H2 2023
March 6, 2024 4 Minute Read
Colocation Insights
- Public cloud providers and AI companies leased most of this market’s available space.
- Rental rates continued rising as market fundamentals and capital costs hampered developers’ yield expectations.
- Hyperscalers remained focused on large campus deployments to accommodate future growth.
- Tenants committed to leases before construction to ensure capacity needs are met.
Market Trends
- Dominion Energy’s transmission line projects progressed and are scheduled to deliver more capacity in 2026.
- Vacancy rates remained at record lows as newly delivered supply was preleased and demand continued to increase.
- Data center developers’ construction activity was driven by power and entitlement timelines.
- Most leasing was in Loudoun and Prince William counties.
Notable Activity
- Yondr Group delivered its first building in Northern Virginia, which is also its first U.S. delivery.
- Prince William Board of County Supervisors approved rezoning for the PW Digital Gateway, which contains 2,000 acres for future development.
- PowerHouse Data Centers delivered its first building in this market, leased to CyrusOne.
- Cologix completed construction of its first delivery for this market.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Explore Markets
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A major hyperscaler is seeking 4,000 MW in the Atlanta market.
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No large blocks of continuous colocation space (2 MW+) are available in the market.
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Lack of supply is causing a price increase across all requirements.
Related Service
- Property Type
Data Center Solutions
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